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Informist, Tuesday, Jul. 15, 2025

MUMBAI – Although silver is currently facing resistance at $39 an ounce on global exchanges, it appears well positioned to extend its rally and reach new multi-year highs in the coming weeks, said Nick Cawley, contributing analyst at gold dealer Solomon Global. The precious metal has plenty of momentum to challenge its all-time high on COMEX hit in 2011, as several factors are aligning in its favour, Cawley was quoted as saying in a report on kitco.com.

On Monday, the September SILVER contract on the Multi Commodity Exchange of India rose to an all-time high of INR 115,136 per kg, while the same-month contract on COMEX traded at a near-14-year high of $39.57 per ounce. However, the precious metal came off highs subsequently.

Industrial demand for silver is providing solid fundamental support to the metal, but its role as a monetary metal is fuelling new momentum, Cawley said in the report. "The spot silver price is set to move higher over the near term and test (the) psychological resistance at $40 per ounce," he said, adding that the earlier high of $44.24, hit on COMEX in 2011, may subsequently come into play.

Concerns that US inflation may remain sticky due to proposed tariffs and other policy measures may support silver. "These inflationary fears have triggered a renewed surge in demand for safe-haven currencies and precious metals. Investors are increasingly seeking protection against potential currency devaluation and purchasing power erosion, making silver an attractive hedge against economic uncertainty," Cawley said.

Meanwhile, expectations that the US Federal Reserve will begin easing rates in September are also benefitting the precious metal. When interest rates decline, it becomes favourable for a range of precious metals as lower interest rates reduce the opportunity cost of holding non-yielding assets like silver and gold, driving prices higher.

At 1510 IST, the most-active September silver contract on the MCX was 0.2% lower at INR 112,704 per kg. On the COMEX, the most-active September silver contract was down 0.4% at $38.59 per ounce.  End

US$1 = INR 85.81

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Taniva Singha Roy

Edited by Nishant Maher

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